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Every Claims Person in California Must Be Trained on the Fair Claims  Settlement Practices Regulations by September 1   

https://zalma.com/blog

The Reasons Why the California Department of Insurance Imposed the  California Fair Claims Settlement Practices Regulations on All Insurers  Doing Business in California  

In 1993, after waiting five years after receiving direction from the  California Supreme Court, the state of California determined that the  insurance industry needed to be regulated to stop insurers from treating  the people insured badly and without good faith. It created a set of  Regulations called the \\u201cCalifornia Fair Claims Settlement Practices  Regulations\\u201d (the \\u201cRegulations) that were designed to enforce the  mandate created by the California Fair Claims Settlement Practices  statute, California Insurance Code Section 790.03 (h). 

In response to  the direction of the California Supreme Court in its decision,  Moradi-Shalal v. Fireman\\u2019s Fund Ins. Companies, 46 Cal. 3d 287 (1988).  In so doing the California Department of Insurance (CDOI) issued rules  that were designed to micro manage the business of insurance claims and  create a method to punish those insurers who failed to comply with the  Regulations. Some of the Regulations recited what had always been  recognized by the insurance industry as good faith and proper claims  handling. Others imposed draconian mandates on what and when to do  everything in the claims process.  

The Regulations also provided a guide to insureds, public insurance  adjusters and policyholders\\u2019 lawyers to assert any violation of the  Regulations to be evidence of an insurer\\u2019s breach of the implied  covenant of good faith and fair dealing.  All insurers doing business in California must comply with the  requirements of the Regulations or face the ire of, and attempts at  financial punishment from, the CDOI.  Knowledge of the requirements of the Regulations is important to  everyone involved in the business of insurance whether as an insurance  adjuster, insurance claims management, public insurance adjuster,  policyholder, defense lawyer, insurance coverage lawyer, and  policyholder\\u2019s lawyer. 

 \\xa9 2021 \\u2013 Barry Zalma

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